Net-lease investment volume increased by 87.5 percent quarter-over-quarter in the fourth quarter 2020 to $23.6 billion, according to CBRE. The net-lease share of all commercial real estate investment activity stood at 14.8 percent in 2020, well above the five-year average of 11.7 percent.
Net-lease Investment volume fell by 24 percent year-over-year in 2020 to $60.5 billion. This was a gentler decline than the 31 percent drop for commercial real estate investment activity overall.
The industrial sector’s share of total net lease investment volume in fourth quarter 2020 jumped by 11.3 percentage points year-over-year to 52.4 percent. The office sector’s share fell by 7.6 percentage points to 27.7 percent, while the retail sector’s share declined by 3.7 percentage points to 19.9 percent.
San Jose, Boston, Dallas/Ft. Worth, Chicago and Los Angeles were the top five cities for net-lease investment volume in fourth quarter 2020.